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Insurance claims adjusters may be exempt under California law

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in Leaders & Managers,Performance Reviews

Claims adjusters may be exempt from overtime under the California Industrial Welfare Commission Wage Order No. 4. Reason: They’re administrative employees.

Recent case: More than 1,000 adjusters sued claims-adjusting company Cambridge Integrated Services and insurance company Aon, charging they had been misclassified as exempt employees under the wage order. The case was dismissed after a judge ruled that the adjusters were exempt and therefore not entitled to overtime wages. (Hodge. v. Aon Corp., No. BC 265725, Superior Court of the State of California, County of Los Angeles, 2008)

Final note: Regularly review how you have classified all employees to make sure the classifications are correct. Do this at annual performance evaluation time, since that’s when you will typically make any changes to job descriptions. Update job descriptions to reflect the actual job duties.

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